council agenda

Supplementary Items

 

 

 

27 July 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

Late Items FOR THE Council MEETING TO BE HELD ON 27 July 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

8....... Confirmation and receipt of Minutes. 3

8.4          Minutes of the Finance Committee Meeting held 20 July 2022 …..……………..………………..….3

12..... Reports of Committee. 4

12.6        Finance Committee - 20/7/2022 - LIST OF PAYMENTS MADE - MAY 2022. 4

12.7        Finance Committee - 20/7/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MAY 2022. 15

12.8        Finance Committee - 20/7/2022 - SERVICE AND PROCESS IMPROVEMENT REVIEW - ANNUAL REPORT. 51

16..... Community and Commercial Services Report. 87

16.3        ECONOMIC DEVELOPMENT ANNUAL REPORT. 87

 


8.               Confirmation and receipt of Minutes

 

8.4             Minutes of the Finance Committee Meeting held 20 July 2022

 

      RECOMMENDATION

      That the Unconfirmed Minutes of the Finance Committee Meeting held 20 July 2022 be noted as received.

 


Council                                                                                      5                                                                          27 July 2022

12.             Reports of Committee

12.6           Finance Committee - 20/7/2022 - LIST OF PAYMENTS MADE - MAY 2022

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.

SUBJECT INDEX

Financial Operations

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   List of Payments - May 2022

 

This item was considered by the Finance Committee at its meeting on 20/7/2022, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council notes the payment of voucher numbers for the month of May 2022 as follows:

CHEQUE PAYMENTS

119248 - 119266

                 92,766.44

ELECTRONIC FUNDS TRANSFER PAYMENTS

87067 - 87323 and 87327 – 87652

7,137,394.20

TRUST ACCOUNT PAYMENTS

CHQ 7589 and EFT 87324 - 87326

                 25,974.48

PAYROLL PAYMENTS

01.05.2022 - 31.05.2022

           2,414,430.14

INTERNAL PAYMENT VOUCHERS

DD 4865 - 4893

               180,691.21

TOTAL PAYMENTS

 

           9,851,256.47

 

OFFICER RECOMMENDATION

That the Council notes the payment of voucher numbers for the month of May 2022 as follows:

CHEQUE PAYMENTS

119248 - 119266

                 92,766.44

ELECTRONIC FUNDS TRANSFER PAYMENTS

87067 - 87323 and 87327 – 87652

7,137,394.20

TRUST ACCOUNT PAYMENTS

CHQ 7589 and EFT 87324 - 87326

                 25,974.48

PAYROLL PAYMENTS

01.05.2022 - 31.05.2022

           2,414,430.14

INTERNAL PAYMENT VOUCHERS

DD 4865 - 4893

               180,691.21

TOTAL PAYMENTS

 

           9,851,256.47

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of May 2022, for noting by the Council and recording in the Council Minutes.

BACKGROUND

The Local Government (Financial Management) Regulations 1996 (the Regulations) requires that, when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, a list of payments made is prepared each month for presentation to, and noting by, the Council.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of May 2022 is presented for information. 

 

Statutory Environment

Section 6.10 of the Local Government Act 1995 and more specifically Regulation 13 of the Regulations refer to the requirement for a listing of payments made each month to be presented to the Council.

 

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 

Options

Not applicable.

CONCLUSION

The list of payments made for the month of May 2022 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

8

27 July 2022

12.6

Attachment a

List of Payments - May 2022

 










Council                                                                                      22                                                                        27 July 2022

12.7           Finance Committee - 20/7/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MAY 2022

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.

SUBJECT INDEX

Financial Services

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: Substantial direction setting, including adopting budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Loan Schedule - May 2022

Attachment b    Investment Report - May 2022

Attachment c    Financial Activity Statement - May 2022

 

This item was considered by the Finance Committee at its meeting on 20/7/2022, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 May 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 May 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

EXECUTIVE SUMMARY

Pursuant to Section 6.4 of the Local Government Act 1995 (the Act) and Regulation 34(4) of the Local Government (Financial Management) Regulations 1996 (the Regulations), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted / amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 31 May 2022.

 

BACKGROUND

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis, and are to include the following:

·        Annual budget estimates

·        Budget estimates to the end of the month in which the statement relates

·        Actual amounts of revenue and expenditure to the end of the month in which the statement relates

·        Material variances between budget estimates and actual revenue/expenditure (including an explanation of any material variances)

·        The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting on 26 July 2021, the Council adopted (C2107/140) the following material variance reporting threshold for the 2021/22 financial year:

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2020/21 financial year as follows:

·        Variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/Statement of Financial Activity report, however variances due to timing differences and/or seasonal adjustments are to be reported only if not to do so would present an incomplete picture of the financial performance for a particular period; and

·        Reporting of variances only applies for amounts greater than $25,000.

OFFICER COMMENT

In order to fulfil statutory reporting requirements and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

 

Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

Net Current Position

This report provides details of the composition of the net current asset position on a full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

Capital Acquisition Report

This report provides full year budget performance (by line item) in respect of the following capital expenditure activities: 

·        Land and Buildings

·        Plant and Equipment

·        Furniture and Equipment

·        Infrastructure

 

Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and associated interest earnings on reserve funds, on a full year basis.

 

Additional reports and/or charts can be provided as required to further supplement the information comprised within the statutory financial reports.

Comments on Financial Activity to 31 May 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $4.6M as opposed to the budget of ($23M). This represents a positive variance of $27.6M YTD.

 

The following table summarises the major YTD variances that appear on the face of the FAS, which, in accordance with Council’s adopted material variance reporting threshold, collectively make up the above difference.  Each numbered item in this lead table is explained further in the report.

 

Description

2021/22
Actual YTD

$

2021/22
Amended
Budget YTD

$

2021/22
Amended
Budget

$

2021/22
YTD Bud Variance

%

2021/22
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

6.08%

4,683,921

1,005,058

1.    Operating Grants, Subsidies and Contributions

6,244,864

4,103,022

4,841,906

52.20%

2,141,842

(342,490)

2.    Other Revenue

661,293

271,381

414,950

143.68%

389,912

94,896

3.    Interest Earnings

672,055

583,809

609,250

15.12%

88,246

26,216

4.    Gain on Sale of Non Current Assets Held for Resale

464,492

0

0

100.00%

464,492

464,492

5.    Fair Value Adjustment to Assets

462,502

0

0

100.00%

462,502

462,502

Expenses from Ordinary Activities

9.17%

7,432,056

(270,143)

6.    Other Expenditure

(2,783,148)

(8,536,663)

(9,685,100)

67.40%

5,753,515

416,463

7.    Non-Operating Grants, Subsidies and Contributions

18,219,244

15,979,529

34,864,437

14.02%

2,239,715

2,135,702

Capital Revenue & (Expenditure)

 

39.89%

23,747,771

9,054,007

8.    Land & Buildings

(4,506,538)

(20,216,837)

(22,802,632)

77.71%

15,710,299

730,840

Plant & Equipment

(973,533)

(2,855,000)

(2,890,000)

65.90%

1,881,467

(44,038)

Furniture & Equipment

(363,211)

(595,109)

(854,368)

38.97%

231,898

20,555

Infrastructure

(19,542,755)

(33,099,676)

(38,537,750)

40.96%

13,556,921

(71,394)

9.    Proceeds from Sale of Assets

79,227

776,071

776,071

(89.79%)

(696,844)

50,388

10.  Proceeds from New Loans

21,325,000

25,450,000

25,450,000

(16.21%)

(4,125,000)

0

11.  Self Supporting Loans - Repayment of Principal

55,517

156,649

267,033

(64.56%)

(101,132)

(10,580)

12.   Total Loan Repayments – Principal

(2,720,229)

(3,060,971)

(3,839,418)

11.13%

340,742

10,580

13.  Advances to Community Groups

(1,325,000)

(5,450,000)

(5,450,000)

75.69%

4,125,000

0

14.  Transfer to Restricted Assets

(33,377,503)

(10,011,600)

(10,021,740)

(233.39%)

(23,365,903)

(1,116,841)

15.  Transfer from Restricted Assets

13,755,058

0

1,735,682

100.00%

13,755,058

5,682,042

16.  Transfer to Reserves

(23,675,630)

(19,330,836)

(23,109,232)

(22.48%)

(4,344,794)

(2,529,667)

17.  Transfer from Reserves

13,455,789

9,199,246

39,544,446

46.27%

4,256,543

3,832,122

 

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is close to budget, being 6.1% ahead YTD.  There are however material variance items contained within this category, on the face of the Financial Activity Statement, that require comment.

 

1.      Operating Grants, Subsidies & Contributions

Ahead of YTD budget by $2.1M, or 52.2%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

3,722,345

1,735,641

1,986,704

114.47%

(3,221)

10250

Information & Communication Technology Services – Other Grants & Subsidies

20,363

 -

20,363

(100.00%)

 -

YTD amount recognised represents the subsidies received for the trainee being utilised in the Information Services business unit.  This was not included in budget at the time of development as it was not known whether a trainee would be placed in this financial year.

10152

Other General Purpose Funding - Grants Commission

3,439,482

1,436,196

2,003,286

139.49%

(20,302)

The variance is due to a prepayment of the 22/23 Financial Assistance Grant.  This has been restricted and transferred into the Prepaid Grants Reserve, so will have a nil impact on the net current position for 21/22. It will be unrestricted and transferred back out to be utilised in the 22/23 year.

10151

Rates Administration – Legal Fees Reimbursement

46,445

27,026

19,419

71.85%

(3,011)

The higher than expected legal fees reimbursement is due to the higher than expected debt recovery proceedings.  All legal costs are recoverable from the properties involved.

10200

Financial Services – Insurance Recoveries

46,369

104,750

(58,381)

(55.73%)

18,172

When and how much insurance claims will be is not possible to predict. The full year budget has been allocated over the year based on the monthly trend over the last 4 years.

10227

Finance & Borrowing – Repayment of Interest on Self Supporting Loans

12,579

47,228

(34,649)

(73.37%)

(1,910)

This is lower than expected due to the SSL not proceeding for the AUDC.  It is offset by lower interest expenses.


 

B1517

Goose Café – Utilities Reimbursements

 -

10,000

(10,000)

(100.00%)

 -

Nothing received, as there were no costs incurred for which CoB needed to be reimbursed for, due to the café burning down.  The budget was set prior to this occurring, and has nil impact on the NCP due to a corresponding offset in utility costs.

Community and Commercial Services

194,379

362,951

(168,572)

(46.44%)

1,036

10542

Club Development – State Government Grants

 -

22,500

(22,500)

(100.00%)

 -

A $30K grant is due from DLGSCI, and activities conducted will be reconciled at year end to determine how much of the grant can be recognised as revenue.

10543

Community Development – State Government Grants

6,397

120,000

(113,603)

(94.67%)

 -

The Lottery West grant of $53K for the Strengthening Communities Program was received in July and is gradually being expended.  A reconciliation will done at year end to determine how much of the grant needs to be recognised as income to offset the expenditure.  A % will require carry over into 22/23 FY as the grant is over 2 years.

11151

Airport Operations – Contributions

 -

50,000

(50,000)

(100.00%)

 -

This was a RADS grant (Dept of Transport) that has been delayed by DOT. The project will commence in the new FY including receipt of the $50k.

B1361

YCAB (Youth Precinct Foreshore) – Contributions

50,223

39,000

11,223

28.78%

(855)

$40K of the actuals relate to the sponsorship cash from Rio Tinto for the continuation of youth services activities in Busselton and Dunsborough.  There have also been various other grants recognised for completed activities, such as Crime Prevention, SW Youth Fest and leadership Camp, that were not fully catered for at the time of creating the budget in early 2021.

10380

Busselton Library – Parenting Payment Reimbursements

14,809

1,265

13,544

1070.69%

(54)

It was not known at time of setting the budget that these payments would be forthcoming.

Planning and Development Services

1,075,087

900,609

174,478

19.37%

131,070

10820

Strategic Planning – State Government Grants

 -

18,750

(18,750)

(100.00%)

 -

This grant funding, provided by DPLH, relates to the CHRMAP project which was anticipated to be completed earlier in the financial year but has been held up in response to concerns raised by residents in Siesta Park and Marybrook.  The CHRMAP will be taken to Council in June and, if approved, the final grant payment will be actioned.

10925

Preventative Services – CLAG – Health Dept Grant

45,916

33,250

12,666

38.09%

 -

The CLAG funding received from Dept of Health is more than budgeted due to an anticipated long mosquito breeding season in 2021-22 and very limited larvicide product carried over from the previous season, requiring an increase in the larvicide product funding approved.

10940

Fire Prevention DFES – Contributions

91,380

55,880

35,500

63.53%

2,950

The reconciliation of the Fire Prevention activities conducted in the 1st, 2nd and 3rd quarters resulted in higher than predicted billing and recognition of contributions from DFES.


 

Engineering and Works Services

1,378,054

1,103,821

274,233

24.84%

(346,375)

10830

Environmental Management Administration – State Government Grants

 -

11,100

(11,100)

(100.00%)

 -

This money is the Western Ringtail Possum Habitat Revegetation Project. This project has been running for four years and we are now into the final season. The Grant has to be acquitted by the end of September 2022.

The money comes from the national Landcare Program but South West Catchments Council contract us to undertake the works. We invoice SWCC.

The City spends the money first to implement the project then through the annual reporting system sends an invoice to recoup the costs.

11160

Busselton Jetty – Contributions

727,173

876,600

(149,427)

(17.05%)

(438,306)

Full year contributions are $149K less than budget, as the gross margin at the Jetty (upon which the contributions are based), were significantly affected by COVID, and the budget for 21/22 was set on prior years (early 2021), well before the audited financials for BJINC were available (October 2021).

11301

Regional Waste Management Administration

45,659

15,304

30,355

198.34%

 -

Other Councils have contributed more than was originally forecast in the budget.

11404

Plant Purchases (12) – Insurance Recoveries

11,900

 -

11,900

(100.00%)

 -

Not something that can be predicted or budgeted for.  Has nil impact on the net result as anything received forms part of what is transferred to the Plant Reserve at year end.

11501

Operations Services Works – Workers compensation Reimbursements

251,711

57,222

194,489

339.88%

(5,202)

Not possible to predict when or how much in workers compensation claims are going to be received.  Budget has been allocated evenly over the year.

C8500

Cycleways Maintenance Busselton – Sundry Reimbursements

12,472

 -

12,472

(100.00%)

 -

This amount represents a reimbursement from Main Roads for costs incurred pruning along the bypass cycleway, for which no budget was included.

                                   

2.      Other Revenue

Ahead of YTD budget by $390K, or 143.7%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Planning & Development Services

93,649

109,035

(15,386)

(14.11%)

(42,008)

10950, 10960, 10970

Animal, Litter & Parking Control – Fines & Prosecutions

47,814

69,878

(22,064)

(31.58%)

(4,308)

Result impacted by improved public compliance coupled with a shift in focus away from prosecution toward education.


 

Engineering & Works Services

510,039

105,461

404,578

383.63%

105,870

11107

Engineering Services Design – LSL Contribution from Other LGA

10,897

 -

10,897

(100.00%)

 -

At the time of Budget development a staff member had not planned to take LSL, which has since changed. We have now received the contribution of the previous employer.

12642

NCC Standpipe – Sale of Water

25,396

14,509

10,887

75.03%

(5,436)

Sales are based on meter readings for water taken from the standpipe.  Over summer there was considerably more volume taken than was originally budgeted.

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

452,641

90,952

361,689

397.67%

91,832

Prices received for scrap metal have been favourable affecting the positive result.  Due to the more favourable prices, a higher volume of scrap metal was sold from stockpiles.

 

3.      Interest Earnings

Ahead of YTD budget by $88K, or 15%, due to an increase in interest rates being offered on investments over the last few months.

 

4.      Gain on Sale of Non Current Assets Held for Resale

This line represents the gain on sale of land that was reclassified in the previous financial year as being held for resale.  The amount of $464K is the difference between the value we had the land recorded at in the books and what we actually received.

 

The land in question is the Ambergate land, which the auditors determined should be reclassified from Non Current Assets to Held for Resale, due to the published intention of Council to sell prior to year end.

 

5.      Fair Value Adjustments to Assets

This line represents re-recognition of capital work in progress costs for the geothermal works at the GLC that dues to a system error were incorrectly written off as P&A assets due to the individual cost amounts being under $5K.

 

As part of the 5 year asset revaluation process, whilst examining the costs associated with the GLC building, this discrepancy was uncovered, and the $462K revenue item is effectively the reversal of the previous incorrect expense write-off.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.4M, or 9.2%, less than expected when compared to the budget YTD. The expense line items on the face of the financial statement that have a YTD variance that meet the material reporting threshold are outlined below.

 


6.      Other Expenditure  

$5.8M, or 67.4%, under the budget YTD. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Executive Services

101,941

76,087

(25,854)

(34.0%)

601

10001

Office of the CEO

44,287

76,087

31,800

41.8%

4,492

The underspend relates to the inter-council initiatives budget line item, which has not been spent to date. 

10011

Emergency Contingency Costs (Other)

57,655

 -

(57,655)

(100.0%)

(3,891)

There is no budget for this particular area, as it is used purely to capture specific unforeseen emergency related costs.  YTD actuals represent the costs associated with the forgone rental opportunities at the YCAB, whilst it is being used as a COVID vaccination clinic i.e. effectively tracking this part of the City’s contribution to the vaccination effort.  This a non-cash “book entry”, with an offsetting revenue amount shown in Venue Hire income for the YCAB facility.

Finance and Corporate Services

1,151,305

1,287,520

136,215

10.6%

227,200

10000

Members of Council

581,487

634,812

53,325

8.4%

(10,969)

Timing related variances with underspends in primarily member allowances and sitting fees ($35k), plus underspends in reimbursements and training expenses due to change of council members.

10151

Rates Administration

33,050

384,910

351,860

91.4%

333,891

The budget is for rating valuations in relation to the interim rating of new properties.  It was set as an even monthly spread, as historically these activities are random (e.g. dependant on building completions), and can’t be predicted.  As such, there will always be timing variances.  There was also a very large jump in May due to the budget including the 3 year GRV revaluation costs.  The actual bill from LVS is expected in June.

10200

Financial Services

47,829

 -

(47,829)

(100.0%)

(2,800)

The budget for the 5 yearly valuation of the City’s Land & Buildings was removed, as at the time of developing the budget it was believed that a qualified in-house valuer would be able to conduct this service. 

10221, 10227, 10228, 10229 & 10230

Finance & Borrowing Programs 4, 11, 12, 13 & 14

197,054

103,082

(93,972)

(91.2%)

 -

The Government Guarantee levy on the City’s loans as collected by the WA Treasury Corp payable for the period 1 January to 30 June 2021 was levied in July 2021. This invoice should have been posted to June via an accrual, however it was not completed and instead included in July’s expenses. Accordingly there will be three payments included in 2021/2022’s reports.

10370

Busselton Cemetery

71,308

 -

(71,308)

(100.0%)

(71,308)

Additional neighbouring land purchased by CoB in September 2019, then transferred to the State Government as Crown Reserve for the cemetery expansion, was incorrectly allocated as a capital expenditure.  This was picked up as part of the 5 yearly asset revaluation cycle and has now been reallocated correctly as a contribution.

10511

Community Assistance Program (Governance)

76,304

16,666

(59,638)

(357.8%)

(19,083)

YTD represents partial allocation of the funds for the You Choose Program.  The full year budget of $100K will be allocated in May / June.

10700

Public Relations

95,486

104,605

9,119

8.7%

(2,957)

The variance is largely attributable to catering for civic events being under budget due to less events being run. 

Community and Commercial Services

1,241,394

6,921,058

5,679,664

82.1%

184,132

10532

BPACC Operations

2,860

37,500

34,640

92.4%

 -

BPACC operational activity will not commence until late 2023.

10533

Welfare / Senior Citizens

90,081

65,097

(24,984)

(38.4%)

 -

The 4th instalment of the yearly grant funding agreement for the Senior Citizens was paid in April, rather than in June where it was budgeted.

10543

Community Development

70,301

176,318

106,017

60.1%

(68)

This relates to the first three rounds of Community Assistance Program. Round 1 and 2 approvals were combined due to Council elections and round 3 closed on 30 November.

From the first 3 rounds $133,873 is committed with actual expenditure to be seen in first quarter of 2022.  Round 4 has now closed and applications are being assessed.  Timing is largely dependent on CAP Applications received from community groups.

10558

Events

674,192

1,074,700

400,508

37.3%

(11,874)

The YTD underspend to budget can be explained as follows:

·        To date there have been 8 budgeted events cancelled due to COVID, totaling approximately $71K;

·        There have been 5 events that have occurred for which the City has yet to be invoiced for their contribution, totaling $57.5K;

·        6 events have had partial payments, however a total of $91.5K remains due to milestones not yet met;

·        A further $192K was forecast to have been incurred by YTD March ($110K for Winter Wonderland, and approximately $60K in general unallocated funds).

10630

Economic and Business Development Administration

168,137

140,637

(27,500)

(19.6%)

(24)

This is due to MRBTA invoicing for visitor servicing which we pay at the beginning of the quarter as opposed to the end of the quarter.

10634

Business Support Program

 -

23,850

23,850

100.0%

 -

Final acquittals of the support program yet to be received.  This budget was carried over from the 20/21 financial year, funded from the MERG Reserve, however it has now been ascertained that only approximately $10,000 will be required.  This will more than likely be the positive variance by the end of the year, offset by a lower transfer from the reserve.

11151

Airport Operations

1,985

2,112,936

2,110,951

99.9%

191,669

Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions etc.

11160

Busselton Jetty

 -

3,000,000

3,000,000

100.0%

 -

The budget YTD represents the City’s contribution to the AUDC project, which has been deferred.  This was to be funded from the Jetty Reserve, so it will remain in the reserve at year end.

11156

Airport Development Operations

115,139

148,550

33,411

22.5%

 -

At the time of setting the budget the timing for the final carried over payments related to a noise mitigation project were not known. $148K was estimated to be remaining in total, split over three payments, however we have not received practical completion on the works, and there are still some outstanding works in progress.

Planning and Development Services

99,828

95,075

(4,753)

(5.0%)

6,294

10805

Planning Administration

 -

15,000

15,000

100.0%

 -

This budget item relates to the Façade Refurbishment Program which the City normally runs on an annual basis.  Due to staff shortages and other priorities this year, it’s not likely that the full year budget of $30K will get spent at all.

10942

Bushfire Risk Management Planning – DFES

27,145

 -

(27,145)

(100.0%)

 -

This unbudgeted spend represents the return of unspent grant funds to DFES for the 20/21 BRP program.

Various

Bushfire Brigades & SES

15,097

1,755

(13,342)

(760.2%)

(28)

Reconciliation and re-imbursement of the brigades was not budgeted to occur until June.

Engineering and Works Services

188,445

156,923

(31,522)

(20.1%)

(1,531)

10830

Environmental Management Administration

16,037

937

(15,100)

(1611.5%)

 -

Biodiversity Incentive Rate Rebate costs per allocated and paid in January, however the budget of $17,650 is allocated to June.  Variance will rectify at year end.

B1223

Micro Brewery - Public Ablution

 -

60,000

60,000

100.0%

 -

The full contribution of $120K to the ablutions, in two instalments, was made in the 20/21 financial year, however due to the lateness of the second $60K instalment, it was inadvertently included again in the 21/22 year budget unnecessarily.

G0042

BTS External Restoration Works

119,383

50,000

(69,383)

(138.8%)

 -

Rendezvous Road Refuse site remedial works.

 

7.     Non-Operating Grants, Subsidies & Contributions  

The positive variance of $2.2M is mainly due to the items in the table below. It should be noted that any negative variance in this area will approximately correlate to an offsetting positive underspend variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances.  Where this is not the case, the reconciliation of the projects and the required funding to be recognised in revenue is not completed until closer to year end.  The overall positive variance however, due to certain projects in the table below, is due to a reimbursement of the municipal fund required for cashflow purposes a lot earlier than was initially budgeted.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

178,370

65,000

113,370

174.4%

117,370

10250

Information & Communication Technology Services – Prepaid Grant Funds Utilised

117,370

 -

117,370

100.0%

117,370

Community and Commercial Services

 -

178,101

(178,101)

(100.0%)

(13,750)

10540

Recreation Administration

 -

76,875

(76,875)

(100.0%)

 -

10590

Naturaliste Community Centre

 -

70,050

(70,050)

(100.0%)

 -

10900

Cultural Planning – Prepaid Grant Funds Utilised

 -

13,750

(13,750)

(100.0%)

(13,750)

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

17,602,913

15,736,428

1,866,485

11.9%

2,012,083

A0001

Kaloorup Road Bridge 3380 – Main Roads Grant

 -

39,000

(39,000)

(100.0%)

 -

A0022

Yallingup Beach Road Bridge - 3347 – Federal Capital Grant

 -

700,000

(700,000)

(100.0%)

 -

A0023

Kaloorup Road Bridge – 3381 – Federal Capital Grant

 -

663,000

(663,000)

(100.0%)

(234,000)

A0024

Boallia Road Bridge – 4854 – Federal Capital Grant

 -

431,250

(431,250)

(100.0%)

(143,750)

A0025

Tuart Drive Bridge 0238 – Developer Cont. Utilised

510,989

2,002,748

(1,491,760)

(74.5%)

(156,594)

B9591

Performing Arts Convention Centre – Federal Capital Grant

 -

5,692,500

(5,692,500)

(100.0%)

 -

B9612

Churchill Park Renew Sports Lights –

State Capital Grant

 -

72,850

(72,850)

(100.0%)

 -

B9614

Dunsborough Lakes Sporting Precinct-Pavilion/Changeroom Fac. - Developer Cont. Utilised

16,172

 -

16,172

100.0%

16,172

C0064

Dunsborough Lakes Sporting Precinct (Stage 1) – Carparking - Developer Cont. Utilised

532,369

 -

532,369

100.0%

532,369

C3116

Dawson Park (Mcintyre St Pos) – Developer Cont. Utilised

71,116

 -

71,116

100.0%

 -

C3211

Tulloh St (Geographe Bay Road) - POS Upgrade – Developer Cont. Utilised

25,043

 -

25,043

100.0%

 -

C3214

Kingsford Road - POS Upgrade – Developer Cont. Utilised

71,437

 -

71,437

100.0%

 -

C3215

Monash Way - POS Upgrade – Developer Cont. Utilised

71,939

 -

71,939

100.0%

 -

C3216

Wagon Road - POS Upgrade – Developer Cont. Utilised

81,341

 -

81,341

100.0%

 -

C3217

Limestone Quarry - POS Upgrade – Developer Cont. Utilised

119,687

 -

119,687

100.0%

 -

C3218

Dolphin Road - POS Upgrade – Developer Cont. Utilised

90,634

 -

90,634

100.0%

 -

C3219

Kingfish/ Costello - POS Upgrade – Developer Cont. Utilised

33,551

 -

33,551

100.0%

 -

C3220

Quindalup Old Tennis Courts Site - POS Upgrade – Developer Cont. Utilised

34,480

 -

34,480

100.0%

 -

C3225

Dunsborough Lakes Sporting Precinct (Stage 1) – Developer Cont. Utilised

1,051,007

 -

1,051,007

100.0%

106,772

C3243

Vasse River - Ongoing Restoration of River Habitat – State Capital Grant

 -

90,000

(90,000)

(100.0%)

 -


 

C3244

Dunsborough Lakes Sporting Precinct - Outdoor Courts – Developer Cont. Utilised

118,503

 -

118,503

100.0%

118,503

F0084

Thompson Way - New Path – Contributions

36,818

 -

36,818

100.0%

 -

F0112

Causeway Road Shared Path – State Capital Grant

 -

98,500

(98,500)

(100.0%)

(18,500)

S0005

Buayanyup Drain Shared Path – Developer Cont. Utilised

183,251

 -

183,251

100.0%

183,251

S0048

Bussell Highway – Developer Cont. Utilised

137,684

400,000

(262,316)

(65.6%)

137,684

S0070

Kaloorup Road - Reconstruct and Seal Shoulders – Main Roads Grant

331,435

 -

331,435

100.0%

331,435

S0072

Causeway Road Duplication – R2R Grant

50,000

 -

50,000

100.0%

50,000

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

 -

448,800

(448,800)

(100.0%)

 -

S0077

Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant

135,576

192,000

(56,424)

(29.4%)

135,576

S0078

Sugarloaf Road –

State Capital Grant

302,993

804,000

(501,007)

(62.3%)

142,191

S0321

Yoongarillup Road - Second Coat Seal –

MR Capital Grant

 -

100,000

(100,000)

(100.0%)

 -

S0331

Barracks Drive Spray Seal – MR Capital Grant

 -

130,980

(130,980)

(100.0%)

 -

S0332

Inlet Drive Spray Seal –

MR Capital Grant

 -

47,000

(47,000)

(100.0%)

 -

S0333

Chapman Crescent Spray Seal – MR Capital Grant

 -

78,000

(78,000)

(100.0%)

 -

S0334

Chapman Hill Road – MR Capital Grant

237,620

1,122,000

(884,380)

(78.8%)

237,620

S0335

Kaloorup Road – MR Capital Grant

 -

361,425

(361,425)

(100.0%)

56,424

S0336

Wildwood Road – MR Capital Grant

1,801,423

1,406,625

394,798

28.1%

 -

W0265

Seascape Rise - Road Safety Upgrade – Developer Cont. Utilised

236,000

 -

236,000

100.0%

236,000

W0274

Rendezvous Road Spray Seals – Developer Cont. Utilised

47,916

 -

47,916

100.0%

47,916

 


8.      Capital Expenditure  

YTD there is an underspend variance of 55.3%, or $31.3M, in total capital expenditure, with YTD actual at $25.4M against the YTD budget of $56.8M. A large portion of this positive underspend variance is offset by the negative variance in Non-Operating Grants, Contributions & Subsidies discussed above, with the remainder offset by the negative variances in Transfers From Reserves and Restricted Assets related to funds held aside for these projects. The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of YTD variance are summarised as follows:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Land

2,599

45,837

43,238

94.3%

4,167

10610

Property Services Administration

2,599

45,837

43,238

94.3%

4,167

This is a contingency fund for costs associated with land acquisition or disposal under the LTFP, such as advertising costs in relation to the proposed disposition of freehold land holdings at Ambergate.

Buildings

4,503,939

20,171,000

15,667,061

77.7%

726,673

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

16,172

1,095,835

1,079,663

98.5%

204,167

There has been minimal expenditure to date as works have not yet commenced. The design is currently under review to achieve budget alignment in consultation with user groups.

B9012

Civic and Administration Building Replacement of Cladding

432,531

100,000

(332,531)

(332.5%)

(760)

The full year budget of $500K for this project was forecast to be completed by June, however works were completed in February and billing complete in April.  By year end there will be savings to budget of approximately $68K, which will remain in the admin building reserve.

Various

Busselton Performing Arts Convention Centre

3,174,096

17,015,538

13,841,442

81.3%

692,637

Construction commenced in February, a lot later than originally forecast.  Unspent budget at June 30 will remain in reserve and restricted assets to be carried over into the following financial year.

B9300/1/2

Aged Housing

Capital Improvements

51,036

182,250

131,214

72.0%

(12,887)

Budgeted works were proposed to separate the power and drainage that service Winderlup Court and Winderlup Villas.  Western Power have now confirmed that separation of power is not required. As there are other works required to these units the proposal is a capex spend of circa $28,000 for bathroom upgrades and reflux valves and a possible further $70,000 for replacement carports.  

B9596

GLC Building Improvements

91,045

213,852

122,808

57.4%

(1,973)

Proposed project for stadium ventilation has been put on hold, pending a review of capital projects. Storage upgrade has commenced. 

B9608

Demolition Allocation (Various Buildings)

 -

20,000

20,000

100.0%

5,000

Any actual demolition costs are included in the Loss on Disposal calculations of the buildings in question, and will not appear here.


 

B9610

Old Butter Factory

17,991

6,000

(11,991)

(199.8%)

 -

The YTD overspend is due to the retention monies owing to the contractor on final completion of project.  These were not factored in at the time of developing the budget.

B9611

Smiths Beach

New Public Toilet

 -

250,000

250,000

100.0%

 -

Notification has been received by the entity that currently supplies the water that they are no longer able to supply water for City toilets. 

As such an MOU is being reviewed by the property team to establish viability of infrastructure works and costs for water supply. A clearing permit application is also underway, however all other activity on the project has been put on hold until these issues are resolved.

It is likely that this project will need to be re-listed in next financial year’s budget, with the funding remaining in reserve until then as well.

B9612

Churchill Park

Renew Sports Lights

144,117

212,850

68,733

32.3%

(68,350)

The installation of both the new oval lighting and renewed lighting at the trotting track has commenced. There is a budget amendment pending as the costs will exceed budget. The project is anticipated to be completed by June 30, however lack of consistent contractor availability may cause this project to carry over into the next financial year.

B9613

CCTV Installation

29,921

50,000

20,079

40.2%

10,000

The CCTV installation at the GLC is complete, but we intend to use the remaining funds to upgrade corresponding components in the CCTV infrastructure to improve the overall system and allow for future expansion.

B9615

Naturaliste Community Centre AMP

(495)

72,000

72,495

100.7%

1,136

Delays due to contractor availability, these works will be re listed into next financial year.

B9616

Buildings Asset Management Plan High Use Allocation

126,714

150,000

23,286

15.5%

(5,466)

Much of the spend in this area is purely maintenance related and will be re-allocated against the operational budget.  The underspend against budget that will result at year end will be offset by the overspend in operations due to the re-allocation of actual maintenance costs.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

32,707

200,000

167,293

83.6%

(25,318)

During Budget planning these works were anticipated to be spread evenly over 5 months.  Due to unforeseen design complexities the works were not able to start on time.  These issues have been resolved and this project will be delivered in this financial year.

B9621

Bovell Construction of Changerooms

17,606

 -

(17,606)

(100.0%)

(17,606)

Costs represent deposits for the initial design, supply and installation of ablutions.  The full year budget of $90K (fully grant funded), will appear in June.

B9622

Dunsborough Youth Centre Building Construction

20,664

 -

(20,664)

(100.0%)

(4,596)

The timing for works and initial procurement of a transportable building was not accurately known at the time of setting the original total budget of $80K, which has been allocated in June.

B9720

BMRA Hangars

 -

210,000

210,000

100.0%

 -

This tender will not be awarded this FY due to staff / resource shortages and the budget allocation will need to be rolled over into next FY. This piece of work will be picked up by the Airport Business Development Officer position, funding endorsed by Council at 11 May Council meeting.


 

B9808

Busselton Jetty Tourist Park Upgrade

4,314

25,000

20,686

82.7%

 -

Timing Issue - capital works upgrades that cannot be done until after Easter (the tourist season). The Facilities team are expecting to raise purchase orders and confirm works before the end of this financial year.

Plant & Equipment

973,533

2,855,000

1,881,467

65.9%

(44,038)

10250

Information & Communication Technology Services

 -

40,000

40,000

100.0%

 -

Vehicle now due to be delivered July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

10372

Dunsborough Cemetery

2,727

20,000

17,273

86.4%

(2,727)

The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment. The delay in procurement of these items is due to current material and supply related issues.  The trailers have in fact been ordered, however delivery is not expected until October.  The budget for this will be carried over in the Cemetery Reserve and re-listed for expenditure in the 22/23 budget year.

10630

Economic and Business Development Administration

 -

75,000

75,000

100.0%

 -

The budget relates to the replacement of two vehicles. One vehicle due to be delivered in June. Second vehicle yet to be ordered.

10810

Statutory Planning

 -

35,000

35,000

100.0%

 -

Vehicle has been ordered, delivery now due in July. The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

10920

Environmental Health Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle will be ordered when new officer appointed.  This will be carried over and relisted in the 22/23 budget.

10950

Animal Control

 -

50,000

50,000

100.0%

 -

Ute for rangers was ordered in May and is expected to be delivered and paid for by the end of June.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

 -

Vehicle due in November 2022.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

11107

Engineering Services Design

69,015

185,000

115,986

62.7%

 -

Survey equipment worth $73K incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 2 x cars delivered.  A new survey ute was ordered in May, but is not expected to be delivered and paid for until October, so the budgeted for this will be carried over and relisted in the 22/23 budget.

11151

Airport Operations

 -

15,000

15,000

100.0%

 -

Slasher (tractor mounted) not yet ordered.

11202

Building Facilities - Weather Station Installations

10,280

20,000

9,720

48.6%

20,000

The actual weather stations have been procured, but are now not expected to be installed until the end of June. Initial forecast was that this was to have happened by May.

11401

Depot Workshop

 -

10,000

10,000

100.0%

 -

The budget is for a replacement hydraulic press.  Specification requirements are being reviewed in light of supply chain issues.

11402

Plant Purchases (P10)

420,639

896,000

475,361

53.1%

 -

Bin cleaning trailer not yet ordered. DWF site ute to be held and not replaced at this time.  New waste truck to be delivered in June.

11403

Plant Purchases (P11)

130,486

569,000

438,514

77.1%

 -

An RFQ for 3 x light trucks is in progress.  Irrigation ute and Parks maintenance ute not yet ordered, waiting feedback on requirements from P&Gs team.

11404

Plant Purchases (P12)

88,453

515,000

426,547

82.8%

 -

Specification development is in progress for 2 x light trucks and RFQ is in progress for a new grader.

11407

P&E - P&G Smart Technologies

 -

75,000

75,000

100.0%

25,000

This budget was to be used for investment in smart technologies to manage / address drying climate, however plans have not yet been developed for its use.  Funds will remain in reserve if not spent for this purpose by year end.

11500

Operations Services Administration

39,931

75,000

35,069

46.8%

(39,931)

Vehicle ordered, delivery now expected in July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

G0013

Domestic Organics Collections (FOGO)

19,346

 -

(19,346)

(100.0%)

(6,449)

At the time of setting the budget of $75K for investigative works and FOGO trials, it was unknown what sort of activities would be undertaken.  As such, the full year budget of $75K has been allocated to an operational contractors line, where in fact we needed to purchase some monitoring equipment to affix to the trucks.  There is an underspend against budget in the contractor line that will offset this spend against a nil budget.

Furniture & Office Equipment

363,211

595,109

231,898

39.0%

20,555

10250

Information & Communication Technology Services

187,458

220,891

33,433

15.1%

(10,775)

Underspend is due to not yet ordering ICT asset replacement items. This is due to be ordered in the coming months though actual delivery may not occur for some time due to global supply chain issues.

10558

Events

 -

200,000

200,000

100.0%

 -

The budget YTD represents the carry-over from the 20/21 year for the electronic billboard. The initial tender process closed with three responses over the forecast budget. The tender was not awarded and it was agreed at the November MERG meeting to restructure the tender with options. A new tender has been issued which closed on 14 April 2022, and received 9 submissions.  A preferred tenderer has been identified, approvals and final costings are currently being sought before the tender is awarded. This has been identified as a carryover into 2022/23, with the tender expected to be awarded in July 2022.

10590

Naturaliste Community Centre

16,326

51,650

35,324

68.4%

 -

A carry-over from $26.6k from 20/21 was for purchase of replacement fitness equipment, pending arrival in June 22 valued of $11.4k.  Fencing purchase of $8k was moved out to infrastructure, increasing the variance.  Overall underspend is as a result of unsuccessful CCCF capital grant application 50/50 contribution of $33.4k.

10591

Geographe Leisure Centre

11,840

 -

(11,840)

(100.0%)

 -

The entire budget allocation was inadvertently attributed to June, resulting in the overspend timing variances.  The $11.8K was expensed for indoor pool blankets, in time for winter, with remaining budget $18K for replacement of fitness equipment.

10900

Cultural Planning

14,199

50,968

36,769

72.1%

31,329

The underspent budget in this area is due to the carryover of the Sculpture by the Bay acquisitive art award, due to the cancellation of the event this year, as well as the latest Vasse Village artwork which is in design and will be installed next financial year. The Vasse Village artwork is funded from the public art reserve and contributions from the developer and business owners.

11107

Engineering Services Design

73,211

 -

(73,211)

(100.0%)

 -

Cost of new survey equipment that was incorrectly budgeted for under Plant & Equipment, instead of Furniture & Office Equipment.

B1350

Churchill Park-

Other Buildings

 -

26,450

26,450

100.0%

 -

The budget relates to the storage facility project. Discussions are still progressing with the Stakeholders, delaying construction until a later date.

B1450

Depot Building-Busselton

19,844

 -

(19,844)

(100.0%)

(2,068)

Expenditure was for 8 sit-to-stand workstations at the depot administration building.  There was no budget for this particular line, however it was believed at the time of procurement that it would be offset by considerable savings in other areas.

Infrastructure

19,542,755

33,099,676

13,556,921

41.0%

(71,394)

Various

Roads

7,822,747

10,536,827

2,714,080

25.8%

(54,659)

Many road construction projects are now well underway.  Impacting this increasing variance through to June will be the outcome from discussions with Council in September/October 2021 where it was decided that the current capital works program would be spread over 18 months extending into the 2022/23 financial year.  To this end, some projects that were to be budgeted this financial year have been put on hold given the state of the economy, availability of contractors and increased costs.

·        48% of the YTD variance valued at $1.323m is associated with the two remaining Regional Road Safety Program projects that are both currently in progress. These works will be completed by June 30.  

·        12% of the YTD variance valued at $340k is associated with the Kaloorup Road Blackspot project with works to come in under budget by est. $400k.

·        The Peel & Queen Street Roundabout Service Relocation works were recently completed in April. This variance will swing into an estimated $380k deficit positon upon receipt of all invoices associated with the project. A budget amendment report will go to Council on this matter.

There will be a significant under expended variance to budget associated with road projects come June 30.

Various

Bridges

1,256,861

5,160,991

3,904,130

75.6%

(16,887)

Major bridge works are completed by Main Roads, with financial recognition of works often not occurring until late in the financial year.

To date, works have been completed on the Bussell Highway bridge #241, Yallingup Beach Road bridge #3347 and the Tuart Drive bridge #0238 that has now been open to the public. Invoices for two of these projects have been received and will be will be entered in June.

The City has limited control over Main Roads scheduling and it is often the case that some Bridge projects are carried over into the following year. The City was recently notified that bridge works on Layman Road, Kaloorup Road, Boallia Road & Gale Road values at $2.308m will now not commence until the 2022/23 financial year. This variance will continue to increase until invoices for works are provided by Main Roads, which is typically at the end of the financial year.

Various

Car Parks

1,083,635

1,909,010

825,375

43.2%

(29,767)

39% of the YTD variance valued at $336k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct where works are progressing.

The following two projects will not be completed this year and thus will represent under expenditures come June 30:

•          Dunsborough Chieftain Crescent Carpark Extension $160k YTD, annual budget $240k.

•          Hotel Site 2 Carpark $230k YTD.

There will be a significant under expended variance to budget associated with Car Parks projects come June 30.


 

Various

Footpaths & Cycleways

872,875

1,808,608

935,733

51.7%

(5,782)

29% of the year to date variance totalling $275k is associated with the $500k Busselton CBD Footpath Renewal project where the majority of this project has temporarily been put on-hold pending further review and potential re list.

11% of the YTD variance valued at $104K is associated with the Buayanup Drain Shared path project. Not all of this the budget will be expended as the value of the project was reduced towards the end of last financial year, however the amount carried over was not adjusted based on the reduced estimate.

16% of the YTD variance valued at $155K is associated with the Causeway Road Shared Path project. Tender prices for these works have come in higher than anticipated and it is thus unclear if this project will proceed this financial year.

There will be a significant under expended variance to budget associated with Footpaths & Cycleway projects come June 30.

Parks, Gardens & Reserves

8,081,691

13,151,100

5,069,409

38.5%

20,993

Various

Busselton Jetty - Capital Expenditure

477,639

681,310

203,671

29.9%

(108,997)

At the time this budget was being prepared the 50 year Jetty plan was being revised and structural assessments were being carried out. To this end, some of the scheduled works were able to be moved forward and as such were not required to be completed this financial year. There will be a variance to budget in the order of $200k come June 30; where these monies will remain in the Jetty Reserve to fund the rescheduled works going forward.            

Various

Coastal & Boating

199,850

1,176,800

976,950

83.0%

(115,702)

70% of the variance valued at $773k is attributable to both the stage 2 West Busselton & Forth Street seawall works. A report to Council in late January resulted in a decision to only proceed with the West Busselton works at this time with some of these costs to be offset by the Fourth Street Seawall project that has been put on hold.  This project has now commenced with contractor costs to be incurred in May/June.

18% of the variance valued at $198k is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding. This project is in the design phase with a major portion of the funding anticipated to be outlaid before the end of the FY; subject to the availability of resources and material.

Various

Waste Services

1,098,136

1,887,500

789,364

41.8%

25,291

Budget for the Busselton Landfill Post-Closure Capping, Rehab & Remediation of $1M are $657k under budget YTD, as works associated with have paused while awaiting DWER’s instruction around remediation options associated with property classifications. Focus for the remaining financial year shifted to earthworks for the construction of Dunsborough Landfill Cell 2 budgeted at $500k. It is anticipated, come June 30, there will be a significant under expended variance to budget associated with several Waste Services projects.

Various

Townscape & Vasse River

60,710

1,500,382

1,439,672

96.0%

233,829

No townscape works of any significance associated with projects in this category have yet to commence, however planning is well advanced.

Some of the townscape works in Dunsborough valued at $1.057m will be staged, between the 21/22 and 22/23 financial years.

The budget of $640K for major Vasse River works, that commenced in April, will be moved into the operational area via a budget amendment in June, as it is not capital related.

Various

Other P&G Infrastructure

6,245,356

7,905,108

1,659,753

21.0%

(13,429)

There are 45 individual Parks & Gardens capital projects budgeted this financial year ranging in value from between a mere $1.8K to $2.1M.

·        67% of the YTD variance valued at $ 1.1M is associated with the Dunsborough Lakes Sporting Precinct project.

·        The Barnard Park East Foreshore Landscaping project is reported at $532K over expended to the annual budget, this has been highlighted in Councillor briefings.


 

Various

Drainage

325,053

246,400

(78,653)

(31.9%)

21,313

The City’s drainage project on Carey street is reported at $95K over budget YTD. The budget for the footpath in the same location is under budget $197K. City Labour costs associated with the footpath may be included in the drainage project; if this is found to be the case the costs will be reallocated.

Various

Regional Airport & Industrial Park Infrastructure

99,893

286,740

186,847

65.2%

(6,605)

YTD actual is made up of four separate account strings all part of the Airport development project. Some are completed (underspent) and others may not be spent until the end of the FY depending on timing of the works. A nominal amount was budgeted for unforeseen noise mitigation requirements, resulting from the commencement of RPT services.  Some of these works have only just commenced.

 

9.      Proceeds From Sale of Assets  

YTD there have been minimal proceeds from sale of assets recorded against the YTD budget of $776K. This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced.  Some vehicles that were planned to be traded/auctioned have also been retained and redeployed instead. 

 

10.   Proceeds from New Loans

YTD it was forecast that the self-supporting loan to BJINC of $4M for the AUDC project would have been drawn.  This will no longer be proceeding.  A further $125K of self-supporting loans to community groups was also forecasted to have been drawn and on-lent by this stage of the financial year.  The combination of these items accounts for the $4.125M negative variance YTD.

 

This is offset by a corresponding positive timing variance of $4.125M in Advances to Community Groups.

 

11.   Self Supporting Loans – Repayments of Principal

         This line is $101K under budget mainly due to the AUDC loan not proceeding, but is offset by part of the positive variance in Total Loan Repayments, where the City is not required to repay those budgeted amounts associated with the un-drawn self-supporting loans.

 

12.   Total Loan Repayments - Principal

        Repayments of the principal on loans is $341K under budget YTD, mainly due to the loan for the BPACC not proceeding in the timeframe as budgeted, as well as the deferment of the AUDC project and hence the non-draw down of the associated self-supporting loan to BJINC (offset per above).

 

13.   Advances to Community Groups

         Although it is not possible to predict when these loans will be applied for, the negative variance is 100% offset by the positive variance in Proceeds from New Loans outlined above.  YTD the variance is $4.125M mainly due to the AUDC being put on hold.

 

14.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $23.4M because there is usually no budget for this item during the year.  The transfers are usually not possible to predict, and are fully reconciled only at year end.

 

At the time of budgeting it is not possible to predict what grants will be received, and in what timeframe, nor when they will be spent and hence potentially transferred to Restricted Assets (or unspent portions thereof). 

YTD, loans of $20M were received for BPACC that were transferred to restricted assets ($10M of which was budgeted for per a budget amendment for an additional $10M borrowing), until utilized, as well as $9.6M in various government grants, plus $1.8M in Roadwork Bonds, and $2M in developer contributions, deposits and bonds.

 

15.   Transfer from Restricted Assets

YTD, there has been $13.8M transferred from Restricted Assets into the Municipal Account. The transfers are usually not possible to predict, and are fully reconciled only at year end.

 

This was attributable to $7.1M of grant money for works completed and reconciled, $810K of Roadwork Bonds, $474K of caravan park deposit refunds, utilization of $3.2M of restricted loan money (BPACC), and $2.2M of various other bonds and deposits returned or utilised.

 

16.   Transfer to Reserves

YTD, there has been $4.3M more transferred to reserves than budgeted due to receiving the $2M of Financial Assistance Grants for the 2022/23 year in advance.  This was put aside in the Prepaid Grants Reserve to be utilised next financial year.  Also, the $2.5M proceeds from sale of the Ambergate land was also set aside in the Strategic Projects Reserve, which was not forecast in the original budget.

 

17.   Transfer from Reserves

YTD, there has been $4.3M more transferred from reserves than budgeted YTD, due to reconciliation of completed reserve funded works occurring earlier than forecast (usually done at year end), for some particularly large projects.

 

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31st May 2022 the value of the City’s invested funds decreased from $107M as at 30th April 2022 to $104.5M.

 

As at 31st May the 11AM (an intermediary account which offers immediate access to the funds compared to the term deposits) account balance is $20.5M, down from $23M as at 30th April 2022.

 

The decrease of $2.5M in 11am account is due to:

·        Addition of $2.5M for sale of Land in Ambergate deposited to 11am account;

·        Deduction of account to meet $5M from the 11am account, with the funds being transferred to the cheque normal operating expenses.

 

During the month of May seven term deposits totalling the amount of $19M matured. These were renewed for a further 96 days at 1.75% on average.

 

The official cash rate increased during the month of May by 0.25% to 0.35%.  A further increase of 0.5% in June has resulted in the current rate being 0.85%. Further increases are expected in the coming months further increasing the cash rate. This will result in higher interest earnings for the City, although future borrowings will incur higher rates also.

 

 

Borrowings Update

During the month no new loans were drawn and no loan repayments were made.  The attached Loan Schedule outlines the status of all existing loans YTD.

 

Chief Executive Officer – Corporate Credit Card

There were no transactions made on the Chief Executive Officer’s corporate credit card during May 2022.

 

Donations & Contributions Received

During the month no donations or contributions were received.

 

Statutory Environment

Section 6.4 of the Act and Regulation 34 of the Regulations detail the form and manner in which a local government is to prepare financial activity statements.

 

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

 

Financial Implications

Any financial implications are detailed within the context of this report.

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 

Options

The Statements of Financial Activity are presented in accordance with Section 6.4 of the Act and Regulation 34 of the Regulations and are to be received by Council. Council may wish to make additional resolutions as a result of having received these reports.

CONCLUSION

As at 31st May 2022, the City’s net current position stands at $4.6M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

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27 July 2022

12.7

Attachment a

Loan Schedule - May 2022

 


Council

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27 July 2022

12.7

Attachment b

Investment Report - May 2022

 


Council

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27 July 2022

12.7

Attachment c

Financial Activity Statement - May 2022

 














Council                                                                                      59                                                                        27 July 2022

12.8           Finance Committee - 20/7/2022 - SERVICE AND PROCESS IMPROVEMENT REVIEW - ANNUAL REPORT

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.4 Govern a professional organisation that is healthy, capable and engaged.

SUBJECT INDEX

Governance

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Manager Governance and Corporate Services - Sarah Pierson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: Substantial direction setting, including adopting budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Adopted Methodology

Attachment b    Example Service Statement

Attachment c    Small Business Friendly Approvals Recommendations

 

This item was considered by the Finance Committee at its meeting on 20/7/2022, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council:

1.         Endorses the Service and Process Improvement Review Annual Report for 2021/2022; and

2.         Acknowledges the continuation of the Service and Process Improvement Review (SPIR) program as part of the City’s continuous improvement approach to organisational performance.

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the Service and Process Improvement Review Annual Report for 2021/2022; and

2.         Acknowledges the continuation of the Service and Process Improvement Review (SPIR) program as part of the City’s continuous improvement approach to organisational performance.

EXECUTIVE SUMMARY

In determining the CEO’s key performance indicators for 2021/2022, the Council and CEO agreed to identify and implement process and service improvement initiatives, including the recommendations of the Small Business Development Corporation’s small business friendly approvals program, and provide an annual report of outcomes through this Committee.  It was also agreed that stage 1 of the service improvement methodology adopted by Council on 28 April 2021 would resume.  Stage 1 is intended as a high level review or analysis of the City’s services (as opposed to a ‘deep dive’ service review).

 


This report presents an overview of the activities and outcomes of service and process review over the previous 12 months.  Discussions around service and process review are reflected in a growing culture of process thinking, and a series of opportunities have been identified and / or actioned through the year.  This report provides a summary of some of the more significant organisational improvements.

 

It is recommended that Council endorses this report, and acknowledge service and process improvement is part of an ongoing continuous improvement approach to organisational performance is also sought.

BACKGROUND

Like many local governments, the City is increasingly challenged with changing community expectations, devolution of services from State Government, and an increasingly complex legislative environment.  The City of Busselton district has also undergone significant growth over the last fifteen years, leading to increased service demands.

 

Maintaining a focus on efficient and effective service delivery is important to meet these needs in a financially sustainable manner; with a clear understanding of the City’s customers, their needs, the services delivered and the outcomes achieved underpinning this.

 

The City currently undertakes internal reviews of its service provision annually through a business planning process.  Through this process service units assess their service provision, identify challenges and opportunities for improvement, and forward plan associated actions and priorities.  Additional resourcing requirements (to fund improvements or to meet service levels) are identified through a resourcing proposal form, and assessed by Senior Management as part of Long Term Financial Planning and annual budget processes.  In addition officers make services improvements as they are identified, within the scope of budget allocations.

 

In order to continuously improve this process, Council adopted at its meeting on 28 April 2021 (C2104/079) a methodology for the implementation of more focused service improvement reviews (Attachment A) – to gather and collate information on City services in order to better understand,  measure and report on the level and quality of service being delivered.  The adopted methodology outlines a three stage service improvement review approach. Stage 1 is to conduct a high level review or analysis of the City’s identified services, building on the current annual service planning.

 

Council allocated an additional $100,000 to the draft 2021/2022 salaries and wages budget for the purposes of resourcing stage 1 of the adopted methodology.  Shortly after however, these funds were repurposed to support an additional position within the Planning directorate.  As a result the following CEO KPI was set for the 21/22 year:

a)         Identify and implement process / service improvement initiatives and provide an annual report of outcomes through the finance committee including a report on the SBDC program recommendations.

b)         Resume implementation of stage 1 of the service improvement methodology adopted by Council.

 

The following outlines the work undertaken this year with respect to service and process improvement.


OFFICER COMMENT

Service and process improvement review activities were undertaken this year through various initiatives.

 

In accordance with stage 1 of the adopted service improvement methodology, a Service and Process Improvement Review (SPIR) program and project team was established during the year.  Two internal part-time secondments from within governance and IT (1 FTE in total) were sourced to form a small project team with guidance of the Manager Governance and Corporate Services.  The position of Corporate Planning Officer within Governance was also transitioned through the year to a Business Performance Officer position - to aid in the future implementation of service and process improvement review work.  Through natural attrition and recruitment this appointment did not occur until April 2022; moving forward however this position will add much needed resourcing.

 

The project team undertook a high level anaylsis of four service areas as part of a ‘pilot’ for what is intended as an ongoing program:

1.         Human Resources (Subservices: HR, Payroll, WHS and Risk)

2.         Legal Services (Subservices: Legal, Contract and Tendering)

3.         Design and Survey (Subservices: Design, Survey)

4.         Ranger Services (Animal Control, Parking Control, Law Enforcement)

 

The approach was to gather existing information relating to the service function, understand the service drivers (who – customer, what – outputs, and why – outcome), analyse the sub services, benchmark service delivery where possible against relevant local government organisations, identify opportunities for improvement and provide recommendations.  This information is included in a Service Statement for each service – an example is attached (Attachment B).

 

Process mapping of a key process was also undertaken using a new process mapping software, Promapp, which enables a range of data to be captured and collated including triggers and inputs to the process, procedure / steps in the process, timeframes – active and wait times in the process, and the cost to complete the process based on the timeframes.  Process mapping has been embraced by staff participating, and while it will take time to integrate Promapp into the organisation, the initial pilot has demonstrated the value and opportunity it presents. 

 

Overall the pilot reviews identified a number of improvements that will have a positive impact on service efficiency and effectiveness.  Many of these are operational in nature, such as for instance review of the servicing levels and allocation of responsibility for the filling of dog bag dispensers, or review processes to improve the efficiency of training administration.  Broader organisational items for progression, subject to prioritisation and resourcing, are detailed below. 

 

Opportunity

Recommendation

IT Road Map

A well developed and communicated IT roadmap will reduce tendency of service areas to source IT solutions on their own, creating the potential for duplication and wastage.

Technology plays an important role in improving efficiency and the development of an IT road map has already been recognised by IT as a priority and is being developed, with this to be reviewed as we complete more service reviews.

It should be noted that the City’s core ERP system, Technology One, is currently going through a process of upgrade.  This upgrade is expected to be complete by the end of 2022, after which the City will have more access to online applications and portals.

Project Management Systems and Technology

The City has a variety of paper based project planning templates.  They are not however used consistently and the lack of one project planning / management approach can lead to project delivery delays due to insufficient lead times, and rework. Ownership of projects can also be unclear when they cross over multiple work areas.

Lack of centralised project management software to aid project communication, efficiency and delivery.

Develop and implement a consistent project management approach (from idea conception through to planning and delivery) and supporting tools. 

 

It is recommended that a software solution be investigated to aid in the application of an organisational wide approach and discipline. 

Organisational Reporting 

Organisational reporting is often very manual, with a lack of established data sets, dashboards etc and reports.

Develop service metrics which can be tracked and reported on. 

Set up self-service dashboards in Tech One and automatic reports.

Measuring Customer Satisfaction

Customer perceptions of service (both internally and externally) are not captured for a number of service areas. 

Develop a process to capture customer feedback.

Online Forms

Many of the City’s internal processes utilise paper based forms which require printing, signing, scanning and registering.  There is an opportunity to use Tech One forms to feed data into forms from the system.

Engage Tech One consultant to improve organisational understanding and use of the Tech One modules, including the use of online forms and workflows.

Database Management

The City’s database requires regular management to ensure maximum contact mechanisms.  This will assist with the efficiency of consultation and engagement.

Develop and implement a process to improve the City’s database.

Research future implementation of a customer relationship management system.


 

Decentralised Procurement

Decentralised procurement can lead to inconsistency in systems and processes and duplication / wastage. 

Undertake a further review of procurement as a broader service area to determine if the current decentralised model is the most efficient.

 

While progress of the SPIR program was somewhat constrained by the available resourcing and other factors such as staff movements, leave, and the impacts of COVID, the piloting of a small number of service assessments has allowed officers to understand the time commitment involved in the process, and to also recognise the limitations of a high level review, versus a ‘deep dive’ service review.  For instance while we do have some high level benchmarking data through our work with the Regional Capitals Alliance WA, there is currently a lack of detailed service level benchmarking data readily available.  Benchmarking across local governments can be difficult even when comparing basic core functions, with organisational structures and the level of service provided varying, and the time required to unravel relevant data and costs to make robust comparisons is more aligned to the complexity of a deep dive investigation (part of stage 2 of the methodology for selected services). 

 

Similarly we currently lack robust service measures (quantitative and qualitative) in some areas, it is recommended as per above that this is an area for focus.   Changes to the chart of accounts, which went live on 4 July 2022, will help the City to link its costings together so that it can report on all of the different types of transactions for each service/project/job undertaken by the City.  This critical piece of work, a significant improvement project in and of itself, will allow us to draw out key data and reports to better assist with benchmarking, measurement and also accurate costing of services.

 

Notwithstanding, the high level benchmarking data we do have indicates that the City is comparatively well placed with other similar regional City Councils. Pleasingly, discussions around process improvement is also leading to a growing culture of organisational process review, with teams looking for ways to streamline what they do. Some examples of improvements made through the year are listed below:

 

Opportunity

Solution

Chart of Accounts Reconfiguration and Enterprise Budgeting. 

As noted above, the City went live with its new chart of accounts on 4 July 2022.  This was the culmination of significant work by the business systems improvement team, finance and key stakeholders around the organisation and will greatly improve the organisational access to costing information and ultimately aid in better decision making.  The 2022/2023 budget is being formulated aligned to this new chart of accounts within the T1 enterprise budgeting model.  While there have been challenges this year running the chart of accounts and enterprise budgeting project concurrently, the online budgeting system will lead to a more efficient budget development process.


 

Amendments made to after-hours messaging service. 

A review of calls received by our after-hours call centre revealed that a large portion (approximately 70%) of calls were non-urgent (people could call back in business hours or email), disconnected on greeting / wrong number, or seeking information available on the website.  In an attempt to mitigate costs associated with these types of calls, a revised after-hours message was developed and implemented to be played in between the call to the City, and the redirection to the call centre. Immediately after, a 30% reduction in calls going through to the call centre was noted, equivalent to a reduction in annual expenditure of between $8,000 and $10,000. 

A review of the bond collection process for low risk bookings. 

 

A trial waiver of low risk bonds for 42 bookings was undertaken with the administration resources reduced by 65 hours and processing costs reduced by $2,000. There were no instances of damage and customer feedback was positive as they don’t need to pay two invoices.  A permanent change has now been formalised. It should also be noted that venue bookings are down overall, likely due to COVID. Under normal circumstances the achieved savings would have been higher.  In addition a review of the workflows removed redundant steps which were causing staff time and frustrations.

Improved management of facility maintenance requests using SharePoint. 

Staff undertook a trial in the use of Microsoft Sharepoint and developed a centralised ‘facilities / maintenance request’ process, on-line form and system. Anyone across the organisation with access to a phone tablet or desktop PC can now submit a maintenance request and review the status of their requests.  This has reduced the number of emails and phone calls to individual facilities officers and provides centralized data for analysis, enabling better tracking and reporting of maintenance requests. The data captured is already providing insights into maintenance trends and improving allocation of work time.

Improvements to Building Condition Reporting (BCR) and Building Inspections.

 

Improved collaboration across various areas of the organisation has led to an improved and more consistent method of capturing and analyzing building condition data to inform a facilities maintenance plan.  As part of the initiative, 60 City owned and managed facilities have been inspected using mobile devices to collect data.  Buildings with a greater number of priority items were then inspected in more detail to produce a plan of works for next financial year.  Using new applications in Microsoft 365 building inspections are able to be done online capturing data, including photos, in real time.  This reduces time spent on administration.

Implementation of CRM module within Rangers. 

Rangers commenced using the T1 customer request management (CRM) module to record and track customer requests. This was previously a manual process with it being time consuming to track and report on completed jobs.  The use of CRM has increased transparency with completed jobs recorded and registered into ECM in a timely manner.

Implementation of T1 applications to record and track subdivisions under construction.

Use of T1 application processes to record and track subdivisions has provided increased communication and workflow transparency between planning and development control.  It has also provided for T1/ECM Connected Content registrations which saves staff a lot of time registering information into the City’s document management system.

Implementation of BPay for payments and bonds.

Bpay functionality within T1 was implemented to streamline the payment process.  This has reduced the effort of finance and provided customers with more payment options.

Improved management of EWS customer requests. 

It was identified that the management of customer requests was better suited to the functions of the customer service team, as opposed to the operations team who are focused on delivery of the works.  As a result a new process was implemented with operations supervisors providing completion reports to the customer service team and customer service closing out the requests with customers. 

Compliance Workflows. 

 

Updated workflows were implemented within T1 to improve management of holiday home and extractive industry compliance matters.  In relation to extractive industries, this has improved transparency and workflow of information between compliance and planning, and has reduced the registration processes for annual audit information with increased efficiency through the T1/ECM Connected Content registration process.

Planning and Building Infringements. 

 

Akin to several of the improvements noted above, T1 is in the process of being configured to enable planning and building infringements to be issued and tracked from the system.

Updating of T1 profiles. 

 

 

As part of the chart of accounts upgrade, the 400+ profiles in T1 financials has been streamlined, saving time associated with new staff set up and providing staff more access to the chart for reporting purposes.

Good receipt workflow. 

 

 

The goods receipt workflow in T1 was implemented to sign off on invoices received. This was previously a manual paper based process.

Improved Field Access

Work is progressing to provide operations staff with increased mobility and access to online forms in the field.  Paper based forms such as the City’s Step Back 5 x 5 form has been translated to a mobile friendly online form using Microsoft applications.

 

 


Small Business Friendly Approvals Program

In addition to the above, implementation of the recommendations from the Small Business Friendly Approvals program has been progressed through the implementation team consisting of staff from across the organisation.

 

Timeframes for completion of the 20 recommendations vary, with a number of actions unable to be commenced as yet and / or not due for completion until late this calendar year.  While staff turnover has had some impact, some great progress is being made including changes to the City’s website, reshaping the initial new small business enquiries process, improved internal communication platforms, and progressing development of a common language / writing guide.  Attachment C provides a summary of progress against each action.

 

Statutory Environment

The Officer Recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

 

Relevant Plans and Policies

The officer recommendation, and the implementation of service improvement reviews, aligns closely to the integrated planning and reporting framework and the development of the City’s Corporate Business Plan. It is envisaged that more detailed service information will be incorporated into future iterations of the City’s Corporate Business Plan, providing the Council and the Community with a more detailed overview of City services and their contribution to achievement of the City’s goals and objectives. The information will also aid Council when considering new services or changes to service provision.

 

Financial Implications

There are no financial implications associated with the Officer Recommendation.  There may however be financial implications associated with identified opportunities for improvement, specifically around technology. 

 

Service and process review work has, and is currently intended to be undertaken within existing resources.  Should Council consider deep dive investigations or wish to increase the level of focus on service analysis additional resourcing may be required.

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 

Options

Further to the officer recommendation, Council may choose to request more information or to provide specific future direction to the CEO with respect to service and process review.


CONCLUSION

Service and process improvement work is part of a continuous improvement approach which will continue in 2022/2023.  Upgrading of the City’s Technology One platform will provide greater opportunity to implement improvements through technology and also to improve the customer experience as identified through the Small Business Friendly Approvals program.  Once the chart of account and enterprise budgeting are fully bedded in, it is anticipated that the Business Systems Improvement Team will also be able to assist IT with systems improvement.

 

With respect to service analysis, the intent is to undertake a high level analysis of the remainder of City services in the coming year and to collate a set of Service Statements with more robust service costings.  Process mapping and the identification of process champions across the organisation is considered important.  A list of opportunities and recommendations will continue to be developed and then prioritised.   

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable


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Attachment a

Adopted Methodology

 
















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Attachment b

Example Service Statement

 



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Attachment c

Small Business Friendly Approvals Recommendations

 










 


Council                                                                                      96                                                                        27 July 2022

16.             Community and Commercial Services Report

16.3           ECONOMIC DEVELOPMENT ANNUAL REPORT

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy

STRATEGIC PRIORITY

3.2 Facilitate an innovative and diversified economy that supports local enterprise, business, investment and employment growth.

SUBJECT INDEX

Economic Development

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Executive: Substantial direction setting, including adopting budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Economic Perfomance Indicators (2021 Update)  

 

OFFICER RECOMMENDATION

That the Council endorses the Economic Development Annual Report for 2021/2022.

 

EXECUTIVE SUMMARY

As part of determining the CEO’s key performance indicators (KPI) for the 2021/2022 period, the Council and CEO agreed to continue a focus on the facilitation of economic development for the District. 

 

This report presents a summary of the initiatives progressed in the previous twelve months and outlines the projected initiatives to be pursued in the coming financial year.   

BACKGROUND

Economic development across the City of Busselton is about attracting and growing business and industry, creating and retaining meaningful jobs and making our community a better place to live.    Internally, the Economic & Business Development (EBD) business unit’s role is to identify, support & promote existing businesses and new industry opportunities to ensure sustainable, strategic and long term economic growth.

 

This annual report is in relation to the following CEO KPI and outlines the core activities and deliverables for the period 1 July 2021 – 30th June 2022 and future areas of focus for 2022-23 as follows:

 

a)        Prior to 30 June 2022, prepare an annual report detailing the economic development initiatives progressed in the previous twelve months and outline the projected economic development initiatives to be pursued in the forthcoming financial year, how they will be delivered, who will be involved (which other stakeholders), what role will the City play and who will it partner with.

b)        Update on initiatives to be provided to Council via quarterly briefings to facilitate the inclusion of budget requirements into the next year’s annual budget.

Council has received quarterly briefings in relation to economic development on the following dates:

·        15 June  2022 -  Quarter 4

·        6 April 2022 – Quarter 3 & Economic Development Strategy presentation

·        2 March 2022 -  Quarter 2

·        27 October 2021 -  Quarter

·        A Council workshop was also run in December 2021 by the EBD business unit to facilitate the identification of Council’s objectives and priorities for achieving economic development growth. The workshop presented the definition and principles of economic development as well as the trends, metrics and roles of stakeholders and the three levels of government – Federal, State and Local. The table below identifies the key role of local government in economic development.    

 

Advocate

·    A voice for the local community

·    Promoting local community interests to other levels of government.

Facilitate

·    Networking and information dissemination

·    Marketing and promotion of the local area including tourism and events

·    Ensuring availability of appropriate land for business and industry and residential development.

Fund

·    Organisations to deliver essential community services

·    Seed funding of ventures where private sector funding is not available.

Partner

·    Form strategic alliances with others in the interests of the community and commercial partnerships

Provide

·    Leadership, through setting the framework to allow economic development

·    Community infrastructure and services e.g. roads, public spaces and amenities

·    Hard infrastructure to support economic development and enable investment

·    Ensure appropriate local procurement policy

 

The workshop also presented an economic and demographic snapshot for the City of Busselton Indicating the growth in population, economic growth as measured by GRP, unemployment data, average incomes and building approvals data for the 2021-22 period. The table below is a snapshot taken from the REMPLAN Economic Performance Indicators (2121 Update) provided by Regional Development Australia South West (RDASW) (Attachment A).


OFFICER COMMENT

The past decade has seen significant public and private investment in developing community and economic infrastructure, focussing on revitalising our town centres and foreshore areas, creating new hospitality and retail centres, significant upgrades to the regional airport, and the start of construction for the Busselton Performing Arts & Convention Centre. The Economic Development Strategy (2016-36) and Implementation plan, along with the Economic Development Taskforce and working groups were key in guiding the delivery of economic development initiatives for the City.  

 

The table below outlines the progress of key economic development projects, programs and initiatives undertaken by the EBD business unit during 2021-22.

 

It should be noted that the business unit has achieved the outcomes below without having a full team to enable delivery of all forecast activities. The Coordinator and Officer roles were both advertised in March 2021, with the Coordinator role remaining vacant for the remainder of the 2021/22 financial year. The Economic Development Officer was re-advertised and filled in February 2022. In order to facilitate the preparation, stakeholder consultation and delivery of the Economic Development Strategy a 10 month contract for an Economic Development Project Officer role was recruited.

 

EBD initiatives undertaken in 2021/22:

 

 

Service

Improvement Actions / Projects

Customer / Stakeholder

Progress

COVID 19 – Economic Recovery

Implementing actions / initiatives in COVID-19 Recovery Plan including the Small Business Support Grants Program and support funding for key stakeholders such as Margaret River Busselton Tourism Association, Margaret River Wine Association and the Busselton and Dunsborough, Yallingup Chamber of Commerce. 

BCCI, DYCCI, SWDC, MRBTA, Town Teams, ASW, Staff and Councillors

Delivered

Dunsborough Foreshore Café

 

Private commercial investment in a café and kiosk on ‘A Class’ Reserve Crown land Dunsborough Foreshore. 

-      Facilitated land excision process with the DPLH and Parliamentary process. 

-      Liaison with preferred proponent to negotiate the terms of agreement and sub-lease.

Dept Planning, Lands and Heritage, City Staff Preferred Proponent (Margaret River Hospitality Group)

 Headlease to be entered into with State Govt drafted; Sub-lease to be entered into with proponent drafted; Agreement to sublease with proponent drafted and with proponent.


 

Busselton Foreshore Commercial Services

 

 

Commercial private investment into the Busselton foreshore redevelopment including:

-      Hotel site - Site 2 (4.5 star): Hilton Garden View, lead internal Project Team to progress Heads of Agreement and Sub-lease signing.

-      Old Tennis Club EOI advertised and preferred proponent (Geographe Bay Brewing Co) endorsed by Council.

-      38 Peel Terrace EOI advertised and preferred proponent (Edith Cowen University) endorsed by Council. 

-      Busselton Foreshore kiosks advertised including an EOI for Foreshore East kiosk.

Private  developer, Dept Planning, Lands and Heritage, City Staff

Hotel Site 2 – Hilton Garden inn under construction and expected to open in 2023;

Old Tennis Club -  Headlease and sublease drafted, business case for DPLH consideration drafted;

38 Peel Terrace, lease drafted and final terms being negotiated.

Industry Sector analysis

Following on from Stage 1 research project, development of investment attraction strategy with the view of a targeted investment attraction campaign to support and attract key target industries.  The City engaged Pracsys to complete the stakeholder consultation and deliver the strategy and action plan.

 

Explore the potential to create an Economic and Business Development Portal which includes investment attraction and business retention and expansion opportunities to support the above initiatives.

City Staff, industry and business stakeholders.

Strategy & Action Plan completed.

BJINC - New licence agreement

City to develop new licence agreement with BJINC.  Explore new opportunities for the licence agreement on completion of the UWDC Project, including KPIS and detailed business planning and reporting by BJINC to the City.

BJINC, Dept Planning, Lands and Heritage, City Staff

 


 

ED Projects and Initiatives

 

Place Project

Guide both local town teams (Busselton and Dunsborough), wider community, business community including owners, retailers and landlords with an aim of activating City Centres - Busselton, Vasse and Dunsborough to support local initiatives. Administer small incentive place program to support projects, explore grant funding opportunities to fund these projects.

 

Digital Economy/Smart Cities Working Group

Smart City Strategy and Implementation Plan. Work collectively with City IT Dept towards the implementation of key Smart City Projects.

 

Implement projects addressing the digital economy in the City Centre. Ie Lorawan project, Mitchell Park Smart Park Pilot.

 

Through the possible expansion of MERG funding. ED Projects and initiatives to support the local economy both growth and economy.

BCCI, DYCCI, Smart City Facilitator, Local Businesses,  Staff and Councillors, neighbouring Councils / Shires

Place project – ongoing

 

Smart City Strategy delivered.

SpendMapp project

Use SpendMapp reporting to share transactional spending data with key stakeholders, conduct analysis of spending / leakage to inform future ED focused projects.

Use the SpendMapp data to review ED Recovery initiatives, events impacts and support Grant applications.

CoB, BCCI, DYCCI, MRBTA, ASW, SWDC

 Ongoing

New ED / Business Website

Small business information, including a “Business Hub” to support businesses including City approval processes, funding and grant information, City commercial opportunities and permits, business investment attraction opportunities , key economic development projects and information.

Further development of ED marketing prospectus material and investment attraction profile on the existing City website.

CoB, BCCI, SYCCI, MRBTA, ASW, SWDC, BASPW

Ongoing

Economic Development Strategy

-      Deliver new Economic Development Strategy 22-27

-      Develop  Implementation Plan

-      Develop Action Plans for project implementation

CoB, BCCI, DYCCI ASW RDASW SWDC, Business & Industry Stakeholders

ED Strategy  and implementation plan – Delivered

Action Plans – In progress

Stakeholder Engagement

-      Conduct educational workshops with Internal stakeholders – Council & SMG

-      Reconvene  the ED Advisory Group

-      Conduct external ED Stakeholder workshops

-      Develop and deliver inaugural Economic Forum 2022

COB, RDASW, SWDC, MRBTA,MRWA, Business and Industry stakeholders

Delivered

 

Further, an achievement of particular note was the running of the City of Busselton Inaugural Economic Forum on 17 June 2022.  This was a full-day interactive program of 20 key note speakers, with panel and Q&A sessions addressing current issues and examining the economic outlook and industries that drive the City of Busselton and the broader South West region.

 

The program included:

·        Welcome - Welcome to Country, Opening Remarks Hon Nola Marino MP, Member for Forrest; Video address by Hon. Alannah MacTiernan MLC, Minister for Regional Development; Agriculture and Food; Hydrogen Industry Member for the South West Region; City of Busselton video prior to Welcome by Mayor Henley

·        The Economics - Regional Recovery, Outlook and Trends, Economics - A Local Perspective, Q&A Panel

·        Jobs, Skills, Housing - Developing Our Future Workforce, Jobs Connection, Working Visa Solutions,  Building the Good Life - Regional Housing Report, Regional Housing, Q&A Panel

·        Tourism Outlook and Engagement - Tourism Regional Outlook and latest trends, How to engage East Coast market & benefits of Regional Branding, Local Success Stories, Q&A Panel

·        Business and Industry Development – Trade, Investment, Funding, Q&A Panel

·        Collaboration, Creativity and Sustainability - Sustainable Business Practice, Collaboration for Success, Creative Innovation, Q&A Panel

·        Thriving not surviving - Business Resilience and Adaption, Positivity and Wellness in Business, Q&A Panel

·        Closing Remarks Followed by Networking Sundowner

 

The event was attended by 80 attendees, who were asked to provide interactive feedback on the day via Slido.com.  A snapshot of the feedback is presented below.

 

 

 

 

Looking ahead for 2022-2023, the Economic Development Strategy 2022-27 has highlighted four key goals and 12 areas of focus for the sustainable development of the region over the next five years:

 

Key Goal Area 1 – Environment

Objectives

·          Protect and preserve our natural environment

·          Progress Smart City Strategy implementation initiatives

·          Foster development of clean energy and circular economies

 

Key Goal Area 2 – Lifestyle

Objectives

·        Provide connectivity, health and civic amenities

·        Foster diverse education, training and  employment

·        Progress place making and town center activation

 


Key Goal Area 3 – Opportunity

Objectives

·        Investment attraction

·        Business support

·        Industry development

 

Key Goal Area 4 – Leadership

Objectives

·        Advocacy using strong voice for our community

·        Collaborate with industry, business and community

·        Demonstrate best practice governance, innovation and organization excellence.

 

Priority activities to support these objectives moving forward are identified in the table below.

 

Objective

Strategies

Role

Metrics/ KPI’s

Town centre Activation and Place-making

1.    Ensure best planning, design and management of our public spaces.

2.    Support and grow vibrant community events program.

3.    Grow the nighttime economy to provide safe and lively night activities in our urban centres

a.    Develop How to Guide for Business

b.    Develop marketing strategy and collateral

COB Planning

COB Events

CCI / COB / SBSC / BJI Business Sector

MRBTA

·   Increased community satisfaction

·   Increased frequency and attendance community events

·   Increased night time economy activity / local spend

 

Ensure industry-aligned skilled workforce

1.    Work with industry to determine future skill labour requirements.

2.    Investigate FIFO Induction Hub

 

Peak Bodies

TAFE, ECU, Industry

·   Increased stakeholder engagement

·   Increased public investment

·   Increased private investment

Invest Busselton Program

1.    Develop Investment Prospectus

2.    Develop Investor Concierge Service

3.    Provide regular market intelligence and regional data

4.    Develop International Engagement Strategy

COB, RDASW, SWDC Trade WA, Austrade, ASW, MRBTA, JTSI

·   Increased public investment

·   Increased private investment

·   Increased development investment


 

Advance Aviation

1.    Develop Airport Masterplan including feasibility studies for commercial demand, freight, best land use, supply chains

2.    Develop Investment Prospectus

3.    Foster private investment into freight hub including cool storage

4.    Advocate for co-investment  for enabling infrastructure

COB, SWDC, RDASW, Aviation industry and Airlines

·   Increased public investment

·   Increased private investment

·   Increased development investment

Advance Business  Tourism

1.    Undertake gap analysis of supporting infrastructure

2.    Develop toolkit for operators to understand market and position themselves

3.    Develop destination marketing collateral

4.    Develop industry database and foster relationships

5.    Collaborate across region for intrastate business development of SW

COB, MRBTA, ASW, LGAs

 

 

·   Increased stakeholder engagement

·   Increased number and spend business visitors

·   Increased product supplier awareness

Advance Emerging Industries

1.    Foster Creatives Hub

2.    Foster Technological Industries

3.    Foster Research and Development

SWDC, COB, Creative Corner, Industry

·   Increased clustering of Creatives

·   Growth in tech oriented industries

Business as usual

1.     Commercial activity opportunities

2.     Remplan & Spendmapp reporting

3.     Stakeholder engagement & consultation

COB, Business & Industry, MRBTA, ASW, SWDC, RDASW, CCI’s

 

 

These actions will be delivered in collaborative partnerships with all levels of government and industry.   Additionally the City of Busselton Economic Development Advisory Group has been reconvened and the terms of reference revised to focus on the delivery of the new Economic Development Strategy (2022-27) and the priority actions. Comprised of City officers, councillors and state and federal government representation, the role of the group is to provide strategic advice on the economic direction of the city and serve as a link between Council and key industry sectors.

 

Statutory Environment

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plan or policy:

·        Economic Development Strategy (2016-36) and Implementation Plan

·        Smart City Strategy (2020-24) and Implementation plan

·        Economic Development Strategy (2022-27) and Implementation plan

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this report.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could:

1.         Choose not to accept the Economic Development annual report.

2.         Request further information on any of the initiatives contained within this annual report.

CONCLUSION

The EBD business unit will continue to work closely with the Economic Development Advisory Group, Economic Development Stakeholder group and across industry to progress actions and initiates outlined in the Economic Development Strategy 22-27 and Implementation Plan as well as deliver business as usual activities in leasing,  business support and industry diversification.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not Applicable


Council

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27 July 2022

1.1

Attachment a

Economic Perfomance Indicators (2021 Update)